Business Exits By Industry
Selling a Cotton Buyers and Brokers Business
Is the economy still a little shaky for a business sale? Sure it is. Yet cotton buyers and brokers businesses continue to sell at a brisk pace, regardless of the economy.
These days, the prospect of selling a cotton buyers and brokers business is so daunting that many would-be sellers are biding their time, waiting for a break in the economic clouds.
But the good news is that there is still demand for cotton buyers and brokers businesses that present well and offer solid earning potential.
Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized cotton buyers and brokers business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. It's common for sellers to finance as much as 70% of the purchase price with a payoff period of four or five years, sometimes in the form of a balloon payment at the end of the repayment period.
Preparing Your Cotton Buyers & Brokers Business for Sale
The outcome of a business sale is largely determined prior to a market listing. Profitable cotton buyers and brokers business sales opportunities leverage a long-term strategy to increase the value of the business to buyers. Even though it may take years to adequately position your cotton buyers and brokers business, the amount of preparation you perform will have direct correlation on asking and sale prices. Additionally, you'll need time to compile financials and other information that buyers will expect to receive.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Even more, the best brokers have a track of record of discreetly identifying likely buyers and contacting them on your behalf. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
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